ROADMAP FOR THE AQUACULTURE INDUSTRY - SUSTAINABLE GROWTH

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ROADMAP FOR THE AQUACULTURE INDUSTRY - SUSTAINABLE GROWTH
SUMMARY

ROADMAP FOR THE AQUACULTURE INDUSTRY
                      SUSTAINABLE GROWTH
ROADMAP FOR THE AQUACULTURE INDUSTRY - SUSTAINABLE GROWTH
Our vision is that Norwegian salmon
      farming will become the most efficient and
      environmentally friendly protein production
                 industry in the world.

    Main objectives
    • By 2030, salmon must be farmed using technologies that eliminate the problems of sea lice,
      prevent escapes and capitalize the value of particulate matter.
    • By 2030, the industry will export salmon worth more than NOK 200 billion per annum and
      represent one of Norway’s most important export industries.
    • Through investments in research and innovation, suppliers to the aquaculture industry will
      become a significant contributor to the development of Norwegian aquaculture. Additionally,
      exports of products and services will increase five-fold by 2050.

    This will be achieved by active development of:
    • Robust Salmon and good fish welfare
    • Healthy Food for a growing and increasingly health-conscious global population
    • Sustainable Production that prioritises biology and environmental sustainability
      ahead of growth
    • Strong Economy within the industry and for society

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ROADMAP FOR THE AQUACULTURE INDUSTRY - SUSTAINABLE GROWTH
Norwegian aquaculture has experienced rather        to the maritime and petroleum industries. The
extraordinary growth since being introduced in      total value contributed by these suppliers to
the 1970s. In those days, the farming of salmon     the entire seafood industry in 2015, including
and trout was mainly considered a supplemen-        associated ripple effects, was estimated at
tary food source for the coastal population.        NOK 23 billion by SINTEF.
Since 1980, the production of Norwegian farm-
ed salmon has increased from 4,000 tonnes to        These aquaculture suppliers are currently go-
approximately 1.2 million tonnes. This means        ing through a consolidation phase with acqui-
that the industry produces on average about         sitions and mergers. Large established groups,
14 million salmon meals every day, throughout       both inside and outside the industry, are buy-
the year. Norway experienced an exceptional         ing national and international technology and
growth in salmon production, of around 10 per       service companies. This consolidation is expect-
cent annually, in the 20-year period leading up     ed to continue. Leading Norwegian aqua-
to 2013. Production has since stagnated and         culture suppliers have established their own
decreased by about 5 per cent from 2015 to          organisations abroad for the purpose of sell-
2016 due to sea lice and its consequences.          ing goods and services to international mark-
                                                    ets. The Norwegian domestic market will re-
Aquaculture is one of Norway’s most import-         main important, not least for the development
ant export industries. By 2016, seafood exceed-     of new solutions. At the same time, exports
ed 12 per cent – of which salmon alone made         of equipment and services have great potential
up more than 8 per cent – of total Norwegian        and may exceed the value of local supply.
exports, by value. Norway accounts for more
than 50 per cent of global salmon farming.
Despite this, according to the FAO, the large
freshwater aquaculture industry in Asia rend-
ers Norway only eighth in the world in terms
of total aquaculture production.

Norwegian salmon farming is highly industri-
alised compared to other farming industries.
Despite this, there is major potential for im-
provement through further industrialisation,
upgrading traditional farming solutions and
transferring technologies from other indu-
stries. In the future, we will also see solutions
that increasingly differ from traditional
production technologies.

Aquaculture suppliers, namely the providers
associated with the aquaculture value chain,
are among the world’s most innovative and
technologically-advanced companies in their
field. In addition to supplying the seafood
industry, they also sell products and services

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ROADMAP FOR THE AQUACULTURE INDUSTRY - SUSTAINABLE GROWTH
SALMON FARMING AS PART OF
    THE SOLUTION
    The world’s population is growing fast, getting      increasing seafood consumption to improve
    older and richer, with more and more people liv-     public health. Farmed salmon is a healthy and
    ing in cities. Over the last 50 years, the world’s   safe food. It is one of the best sources of Ome-
    population has doubled and the world econ-           ga 3 in our diet. Strict regulations and ongoing
    omy has increased six-fold. The middle class         monitoring ensure that farmed salmon is safe
    in emerging economies is expected to triple          to eat. The safety and health benefits of eating
    by 2050. The increasing purchasing power of          fish such as farmed salmon are well-documen-
    this expanding global middle class is creating       ted. According to the Scientific Committee
    a large and growing market for Norwegian             on Food Safety (VKM), it protects against
    seafood. Norwegian salmon is too expensive to        cardiovascular disease, among other things.
    feed the poorest populations, but make an im-
    portant contribution to world food production.       In many ways, access to feed raw materials
                                                         represents both an opportunity and a threat
    The world needs safe, healthy, good food pro-        to the salmon industry. A threat because of
    duced in a sustainable and efficient manner.         limited access to Omega 3 oils and fishmeal.
    Seafood has the potential to provide this. Near-     An opportunity because salmon farming is one
    ly 70 per cent of the earth’s surface is covered     of the most efficient ways to produce protein.
    by water, yet only about two per cent of the         Additionally, many by-products are used in
    world’s food production comes from the sea.          feed production.
    The impact on the climate from agriculture is
    also significantly higher than that from aqua-       Increased salmon production and greater
    culture. Therefore, in order to supply an ever-      utilisation of the opportunities provided by
    increasing global population with enough food,       aquaculture will help sustain future food pro-
    aquaculture production must be increased.            duction. Future market opportunities for
                                                         Norwegian salmon are contingent on consum-
    Health authorities worldwide, including the          ers continuing to consider Norwegian salmon
    World Health Organization (WHO), recommend           a healthy, sustainable and desirable product.

                                                                                                     Illustration: Marine Harvest

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ROADMAP FOR THE AQUACULTURE INDUSTRY - SUSTAINABLE GROWTH
HEALTHY GROWTH                                     to “crossover” in order to exploit solutions and
Further development requires a recognition         expertise from other industries will be im-
of the need to increase the production of sea-     portant. Technology from the petroleum and
food as well as significant changes to the indu-   maritime industries are now being developed
stry. New technology is crucial to reaching our    for use in aquaculture.
vision, and the industry must accept that dev-
elopment cannot occur until environmental          The Government’s ambition is for Norway to
challenges, such as sea lice, are addressed and    become the world’s leading seafood nation
effectively managed. The future potential of       through a five-fold increase in salmon produ-
Norwegian salmon production is more import-        ction and a six-fold increase in value creation
ant than short-term results and a single-minded    between 2010 and 2050. Although growth in
focus on growth.                                   Norwegian salmon production has stagnated
                                                   since 2012, the potential for further expansion
Our extensive sea and coastal areas, ideal temp-   is high.
eratures and well-developed infrastructure
give Norway a significant advantage in terms       Future growth in the aquaculture industry
of efficient salmon production. Norwegian          could take the form of increased production,
aquaculture can also build on well-established     greater redistribution, aggressive product
traditions, solutions and expertise from the       development and increased market develop-
maritime industries.                               ment. Additionally, there is great potential to
                                                   increase sales of technologies and services
The total production costs of Norwegian aqua-      to international aquaculture markets. This also
culture need to be reduced to ensure future        includes products and services in research and
competitiveness. Further industrialisation is      fish health. Norwegian Salmon is a strong brand
therefore needed. A proactive approach to          both nationally and internationally. Because of
the challenges currently facing the industry       its environmental challenges, and the way these
is also required, rather than using massive        have been handled, the industry is still strugg-
resources to tackle problems after the event.      ling with its reputation. Parts of the industry
Collaboration between parties who contribute       have not fully acknowledged these challenges.

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ROADMAP FOR THE AQUACULTURE INDUSTRY - SUSTAINABLE GROWTH
DEVELOPMENT AND INNOVATION
    More rapid innovation is necessary. The Government’s system of development licenses is in-
    tended to stimulate ground-breaking new solutions for many of the environmental challenges
    facing the aquaculture industry.

    The focus must be on developing solutions that prevent lice infestation, the spread of infection
    and fish escaping, as well as on exploiting resources that currently go to waste. This does not
    mean that completely enclosed facilities are the only solution; but future farms must adopt diffe-
    rent and smarter barriers to infection and escape than at present.

    Some of the new aquaculture solutions may enable salmon production elsewhere in the world,
    in locations that do not enjoy the same natural conditions as in Norway with its long coastline,
    deep fjords and optimal water temperatures. Bearing today’s high prices in mind, land-based fa-
    cilities could also become profitable. The development of new solutions with less environmental
    impact and cheaper production costs will therefore be required to strengthen the overall compe-
    titiveness of Norwegian aquaculture. Norsk Industri harbours ambitions for Norwegian aquacul-
    ture to ensure its global competitiveness through always being at the forefront of development.

    The goal is for Norwegian aquaculture to be the largest and best in salmon farming industry
    through sustainable growth, rapid innovation, expanding industrialisation and further develop-
    ment of products and markets.

    AMBITIONS                          Impact on the environment
                                       Production growth
    The blue line illustrates
    production growth ambitions
    whereas the red dotted lines
    indicate potential environ-                                      A
    mental impact outcomes.
    Increased production volume
    with existing level of environ-
    mental footprint will result in
    an unacceptable impact on the                                                                B
    environment (A). Stabilizing
    existing levels of emission (B)
    will not prove sustainable over
    time. New solutions with lower
    environmental footprint per kilo
    fish produced (C) are necessary
    to obtain future production
    growth targets.

                                                                                             C

                                                                                                     Time

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ROADMAP OF RECOMMENDATIONS                               besides sea lice, and how these can be used
A prerequisite for ensuring healthy growth in            to regulate the aquaculture industry, must
salmon farming is that the industry and Go-              be established.
vernment work together to increase expertise,          • All facilities must be ASC-certified or appro-
develop technologies and expand industriali-             ved under a similar scheme by 2022.
sation.                                                • Existing special regulations that contribute
                                                         to bureaucracy and weaken competitiveness
In summary, the following measures are                   for the industry must be abolished, while
proposed:                                                avoiding new ones.
                                                       • Fees for new production permits and the
Management and regulations                               extension of existing permit must, in their
• The system of promoting and awarding                   entirety, be charged to the host municipalities.
  development licenses must be extended
  until the environmental challenges identified        Export-oriented measures
  in the roadmap are resolved.                         • Negotiating new trade agreements must be
• The production areas scheme is to be                   intensified.
  continued, but with larger areas and stricter        • The export levy must be abolished.
  regulations on fallowing and the use of oce-         • An export strategy for Norwegian aquacul-
  an “firelines” to reduce the risk of the spread        ture technologies must be established.
  of infection.
• Fish farms that are not made escape-proof            Strengthening research, development
  by 2024 will be required to label all salmon         and innovation
  for tracking and easier harvesting.                  • A national forum for research and innovation
• Independent regional sea lice counting                 in aquaculture technologies and sustainable
  teams are to be set up from 2018                       farming must be established.
• From 2022, a fee linked the number of sea            • The aquaculture programme, Demo Hav-
  lice in the farms is to be introduced.                 bruk, is to be established at the Research
• Additional sanctions, such as the require-             Council of Norway and focus on alleviating
  ment for sea lice-free facilities, is to be intro-     risk in testing and piloting new aquaculture
  duced from 2027.                                       technologies.
• Knowledge of environmental indicators                • Research on fish health is to be intensified.

          2018
          Independent       2022                             2027                                 2050
          counting          Sea lice fee                     Sea lice-free                        5x
          teams                                              installations

  2016                      2022             2024                            2030
  60 billion     ASC–certification           Escape-proof                    200 billion
                                             installations

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